I recently met an individual that shared a lot of the same interests in REI as myself and claims to have funding for immediate use. I am meeting with this person later today and I want things to go as smoothly as possible. We are both rookies to real estate investing and I would like to know, because I’m sure this question will come up during our meeting, how would the average process go in terms of funds handling/transfer between me and this potentional investor? Of course there are some details to hammer out, but this individual has made it clear that they are looking for a business partner that could “swing a hammer” (which would be me) while they provided the financial backing. Assume everything will be 50/50 split. I am more interested in rehabbing and selling while the investor is more interested in landlording so obviously we have to figure out some kind of common ground with a mixture of the two but, my main questions are:
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In a partnership like this, who closes on the homes? If I am the one to close on the homes, how are the funds moved (from investor > me > sellers or investor > seller or ??)?
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How do we protect ourselves to make sure we each get paid in either scenario (investor controls the deals or I control the deals)? What documents would need to be involved? Could we draw up simple documents or does an attorney need to be invloved? Should we each have our own attorney or can we both share one?
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How to structure profit disbursement in a rental property (do we split the monthly rental income 50/50?)
Any other advice is welcome. Thanks!